Legislature(2007 - 2008)
04/09/2008 10:24 AM Senate FIN
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
SENATE FINANCE COMMITTEE
April 9, 2008
10:24 a.m.
CALL TO ORDER
Co-Chair Stedman called the Senate Finance Committee meeting
to order at 10:24:47 AM.
MEMBERS PRESENT
Senator Lyman Hoffman, Co-Chair
Senator Bert Stedman, Co-Chair
Senator Charlie Huggins, Vice-Chair
Senator Kim Elton
Senator Donny Olson
Senator Joe Thomas
Senator Fred Dyson
MEMBERS ABSENT
None
ALSO PRESENT
Annette Kreitzer, Commissioner, Department of
Administration; Kevin Brooks, Deputy Commissioner,
Department of Administration; Bruce Ludwig, Business
Manager, Alaska Public Employees Association/American
Federation of Teachers; Darwin Peterson, Staff, Co-Chair
Stedman; Rob Earl, Staff, Representative Mary Nelson;
Representative Bob Lynn; Renee Limoge, Staff, Representative
Anna Fairclough; Emily Beatley, Staff, Representative Jay
Ramras; Representative Jay Ramras; Representative Beth
Kerttula; Eleanor Wolfe, Staff, Representative Kurt Olson;
Representative Mike Hawker; Representative Gabrielle LeDoux;
Sonya Hymer, Staff, Representative Gabrielle LeDoux; Tom
Wright, Staff, Representative Mike Chenault; Cliff Stone,
Staff, Representative Peggy Wilson; Kathy Roemmich, Marine
Transportation Advisory Board; Mary Siroky, Special
Assistant, Department of Transportation and Public
Facilities
PRESENT VIA TELECONFERENCE
Phillip Tschersich, Kodiak; Joe Dinnocenzo, Kodiak; Nick
Sagalkin, Kodiak; Steve Thomsen, Kodiak; Jeff Wadley,
Kodiak; Tony Price, Regulatory Commission of Alaska; Bob
Murphy, Kodiak; Sarah Fisher-Goad, Deputy Director of
Operations, Alaska Industrial Development and Export
Authority and Alaska Energy Authority, Department of
Commerce, Community and Economic Development; Bruce
Zalnaraitis, Life Alaska; Dave Kensinger, Petersburg
SUMMARY
HB 2 "An Act relating to the vocational education
account and appropriations from that account; and
providing for an effective date."
CSHB 152(FIN)
"An Act establishing a renewable energy project
account and a renewable energy fund and describing
their uses and purposes."
CSHB 152(FIN) was heard and HELD in Committee for
further consideration.
CSHB 252(STA)
"An Act requiring paid leave from employment for
organ and bone marrow donation."
CSHB 252(STA) was REPORTED out of Committee with a
"do pass" recommendation and with fiscal note #6
by the Department of Administration and with
fiscal note #7 by the Department of Commerce,
Community and Economic Development.
CSSSHB 294(TRA) am
"An Act establishing the Alaska Marine
Transportation Advisory Board and setting out its
powers and duties; making conforming amendments;
and providing for an effective date."
CSSS HB 294(TRA)am was heard and HELD in Committee
for further consideration.
HB 296 "An Act extending the termination date of the
Board of Parole; and providing for an effective
date."
HB 296 was REPORTED out of Committee with a "do
pass" recommendation and with fiscal note #2 by
the Department of Corrections.
HB 334 "An Act extending the termination date of the
Council on Domestic Violence and Sexual Assault;
and providing for an effective date."
HB 334 was REPORTED out of Committee with a "do
pass" recommendation and with fiscal note #1 by
the Department of Public Safety.
CSHB 359(FIN)
"An Act relating to the term of probation for
persons convicted of minor consuming or in
possession or control of alcohol or repeat minor
consuming or in possession or control of alcohol;
and relating to termination of probation for
certain persons convicted of minor consuming or in
possession or control of alcohol or repeat minor
consuming or in possession or control of alcohol."
CSHB 359(FIN) was REPORTED out of Committee with
"no recommendation" and with zero fiscal note #1
by the House Judiciary Committee and fiscal note
#2 by the Court System.
HB 400 "An Act relating to a person who seeks medical
assistance for a person experiencing a drug
overdose."
HB 400 was REPORTED out of Committee with a "do
pass" recommendation and with zero fiscal note #1
by the Department of Administration.
HB 413 "An Act extending the termination date for the
Real Estate Commission; and providing for an
effective date."
HB 413 was REPORTED out of Committee with a "do
pass" recommendation and with fiscal note #1 by
the Department of Commerce, Community and Economic
Development.
HB 2 was scheduled but not heard.
CSHB 417(FIN) am
"An Act relating to the compensation for certain
public officials, officers, and employees not
covered by collective bargaining agreements;
relating to pay increments for longevity in state
service; and providing for an effective date."
CSHB 417(FIN) am was heard and HELD in Committee
for further consideration.
CSHB 419(FIN)
"An Act relating to state lease-purchases of
equipment and other personal property; and
providing for an effective date."
SCS CSHB 419(FIN) was REPORTED out of Committee
with "no recommendation" and with zero fiscal note
#1 by the House Finance Committee for the
Department of Administration and zero fiscal note
#2 by the House Finance Committee for the Office
of the Governor.
CS HCR 13(FIN)
Establishing and relating to the Education Funding
District Cost Factor Commission.
SCS HCR 13 (FIN) was REPORTED out of Committee
with "no recommendation" and with zero fiscal note
#2 by the House Finance Committee for the
Legislature.
10:25:57 AM
CS FOR HOUSE BILL NO. 417(FIN) am
"An Act relating to the compensation for certain public
officials, officers, and employees not covered by
collective bargaining agreements; relating to pay
increments for longevity in state service; and
providing for an effective date."
Co-Chair Hoffman MOVED to ADOPT SCS CSHB 417(FIN), labeled
25-GH2011\E, Wayne, 4/6/08, as the working document before
the Committee.
Co-Chair Stedman OBJECTED. He reported on a legal opinion
which declared that the amendment added to the bill on the
House Floor was a violation of the separation of powers
doctrine.
Co-Chair Stedman WITHDREW his OBJECTION.
There being NO OBJECTION, SCS CSHB 417(FIN) was adopted.
10:28:53 AM
ANNETTE KREITZER, COMMISSIONER, DEPARTMENT OF
ADMINISTRATION, commented that the bill is in front of the
Committee to provide a cost of living adjustment of 5.5
percent, 3 percent, and 3 percent for fiscal years 2008,
2009, 2010, for non-covered state employees in the
executive, legislative and judicial branches. Commissioners
and other fully exempt executive branch employees currently
on a salary override are not included in this legislation.
The intent is to address the issues of recruitment and
retention.
10:30:28 AM
KEVIN BROOKS, DEPUTY COMMISSIONER, DEPARTMENT OF
ADMINISTRATION, addressed the positions set in statute and
the sections of the bill:
Section 1 adjusts compensation for the commissioners
for the limited entry commission.
Section 2 conforms language for the Alaska State
Defense Force.
Section 3 changes the pay for the chief procurement
officer in the Division of General Services.
Section 4 removes a statutory limitation on the
appointment of deputy commissioners.
Section 5 readjusts the salary schedule for classified
and partially exempt employees to reflect a cost of
living adjustment effective July 1, 2007.
Section 6 provides for a 3 percent cost of living for
FY 2009 and Section 7 does the same for FY 2010.
Section 8 makes changes to the current longevity step
process for employees who reach Step F.
Section 9 addresses pay for Regulatory Commission of
Alaska commissioners.
Section 10 repeal the current longevity step language.
Section 11 provides salary adjustments for certain
exempt officers and employees of the executive branch.
Section 12 provides for judicial employees, including
magistrates. Judges would not receive a retroactive
adjustment.
Section 13 specifies that employees of the university
are entitled to salary increases.
Section 14 is prospective language to address the
steps.
Section 15 is transition language.
Sections 16 and 17 deal with retroactivity.
10:37:59 AM
Co-Chair Stedman addressed the three fiscal notes.
Co-Chair Hoffman voiced appreciation for the need to get
beyond a frozen pay scale. He wondered if the bill would
provide research information about which jobs are needed and
how to fund them.
Ms. Kreitzer thought there was a bill that deals with
elected officials' and commissioners' salaries. She shared
historical information about the matchup. She did not
object to Co-Chair Hoffman's suggestion of a salary survey.
Senator Elton emphasized that the bill does not increase
legislators' pay.
10:41:38 AM
Senator Huggins requested more information about
retroactivity. Mr. Brooks explained that retroactivity is
applied where appropriate with non-covered employees.
Senator Huggins asked what that costs. Ms. Kreitzer shared
the intent to keep parity between the covered and non-
covered employees. Mr. Brooks said the retroactive piece is
in another appropriation bill.
RECESSED: 10:43:40 AM
RECONVENED: 2:41:16 PM
BRUCE LUDWIG, BUSINESS MANAGER, ALASKA PUBLIC EMPLOYEES
ASSOCIATION/ALASKA FEDERATION OF TEACHERS, shared statistics
about his organization's membership. He emphasized the
difficulty of recruiting and retaining employees. He
pointed out that only exempt and partially exempt employees
will benefit from this bill. He thought it should be
applied to 85 percent of employees instead of 8 percent.
2:47:12 PM
PHILLIP TSCHERSICH, KODIAK, spoke as a member of the
supervisory unit with the Department of Fish and Game. He
said he was disappointed with contract negotiations. He
related the causes for poor retention rates in Alaska. He
testified in support of HB 417 for all unionized and non-
unionized employees.
2:50:27 PM
JOE DINNOCENZO, KODIAK, said he works for the Department of
Fish and Game. He noted poor morale as recruitment and
retention issues grew over the past 30 years. He testified
in support of HB 417.
2:52:04 PM
NICK SAGALKIN, KODIAK, reported that he also works for the
Department of Fish and Game. He agreed with the previous
testimony and spoke in support of HB 417. He reported that
a salary study in the Department of Fish and Game was
completed.
2:53:47 PM
STEVE THOMSEN, KODIAK, agreed with the previous testifiers.
He shared experience with negotiation issues such as
retention. He testified in support of HB 417.
2:54:52 PM
JEFF WADLEY, KODIAK, an employee of the Department of Fish
and Game, testified in support of HB 417.
2:55:40 PM
TONY PRICE, REGULATORY COMMISSION OF ALASKA, referred to
Section 9 of the bill, which amends Regulatory Commission of
Alaska Commissioner pay. He spoke of the expertise needed
to make rate decisions and of the need to attract qualified
applicants. He maintained that the level of pay for
commissioners needed to be raised to range 30.
Senator Dyson asked if a range 27 is high enough to attract
and retain desired employees. He requested clarification
regarding the specifics of range 27. Mr. Price discussed
steps A-F for range 27.
2:59:56 PM
BOB MURPHY, KODIAK, testified in support of HB 417 as it
applies to unionized and non-unionized employees.
3:01:49 PM
ANNETTE KREITZER, COMMISSIONER, DEPARTMENT OF
ADMINISTRATION, said Senator Dyson was correct in his
conclusion about range 27. She explained that collective
bargaining is a process. It is difficult when one piece is
turned down. She described what led to arbitration with the
union.
Senator Elton summarized his understanding of Section 9. He
described scenarios where new commissioners could come in at
varying salaries. Ms. Kreitzer thought it would free the
Governor to offer a range of salaries in order to improve
recruitment. Senator Elton thought there would be
situations where inequity results. Ms. Kreitzer saw it
differently. She reiterated that the intent was to provide
more flexibility. Senator Elton listed occupations where
recruitment is a problem. Ms. Kreitzer suggested that
disparity in salaries is acceptable. Senator Elton
requested more information about recruitment tactics and
salaries.
3:08:25 PM
Senator Dyson asked for an explanation of step M. Ms.
Kreitzer said that the salary schedule only goes through A-F
because if it were to go to step N, it would not fit in the
statute book. The language deals with that problem by
saying that every two years there will be a 3.75 percent
increase.
CSHB 417(FIN)am was HEARD and HELD in Committee for further
consideration.
3:09:38 PM
CS FOR HOUSE BILL NO. 152(FIN)
"An Act establishing a renewable energy project account
and a renewable energy fund and describing their uses
and purposes."
Senator Elton MOVED to ADOPT SCS CSHB 152(FIN), labeled 25-
LS0413\J, Kane, 4/8/08. There being NO OBJECTION, it was so
ordered.
3:10:29 PM
DARWIN PETERSON, STAFF, CO-CHAIR STEDMAN, highlighted the
changes in the new SCS. On page 1, there was a change in
the title to accommodate the changes made in the bill. On
page 1, line 9, the word "electrical" was removed. On page
2, line 19, the words "zero fuel costs" were removed. On
page 2, line 21, the word "can" was previously "should". On
page 2, lines 23-25, language was inserted to say that it is
the intent of the legislature to appropriate $50 million in
capital funds per year for the next five years, which is the
sunset date of the bill. On page 2, line 26, Section 2 was
added. The previous section created the renewable energy
fund. Mr. Peterson emphasized that this change was the most
substantive change in the bill. The references to the fund
were removed and, instead, a renewable energy grant
recommendation program was created. On page 2, line 31, the
words "achieve a statewide balance of grant funds" were
added.
Mr. Peterson continued to explain that on page 3, line 5, a
new subsection was added to require that the Alaska Energy
Authority make recommendations to the legislature for grants
to eligible renewable power projects. On page 3, lines 7-
10, a new subsection says that the recommendations will be
provided no later than 10 days after the first regular
session of each legislative session. On page 3, line 12,
after the words "the authority shall", the words "make
recommendations to the legislature" were added.
Mr. Peterson related that page 4, line 11, deals with the
make up of the advisory committee. It removes the Governor
from the process so that the President of the Senate and the
Speaker of the House will make all of the appointments. On
page 4, lines 14 and 15, the word "electric" was inserted
prior to the word "utilities". Page 4, lines 21 & 23, deals
with appointments of a member of the House and of the
Senate. The two appointments that were removed were from
non-profit environmental groups and non-profit consumer
groups.
Mr. Peterson addressed page 5, line 10, after the word
"animal" the words "or fish products" were inserted. Page
5, line 13, determines a five-year sunset. Page 5, Section
4, is a temporary law section that provides for grants to be
made in FY 09. The Alaska Energy Authority would submit
their list of recommendations to the Legislative Budget and
Audit (LB & A) Committee up to $50 million. LB & A would
have 45 days to review those recommendations. Page 6, lines
7-9, is transition language that creates a tier for the
appointments to the board.
3:15:39 PM
Senator Dyson asked why coal is not included. He referred
to page 2, line 4, cost of fuels, and maintained that the
cost of coal is also going up. He also said that coal could
be included in line 21. He maintained that the list on page
5, line 9, was not renewable energy sources. He argued the
merits of the inclusion of coal.
Mr. Peterson reported that the sponsor continues to object
to the inclusion of coal. He called the list on page 5,
line 9, energy sources, but not necessarily renewable energy
sources.
Senator Dyson maintained that he does not understand the
logic of the argument. Co-Chair Stedman suggested he make
an amendment to the bill.
3:18:48 PM
Co-Chair Stedman MOVED to ADOPT Amendment 1:
Page 4, lines 11 - 12:
Delete "jointly by the speaker of the house of
representatives and the president of the senate"
Insert "by the governor"
Co-Chair Stedman OBJECTED for discussion purposes. He
explained that the amendment returns to the previous version
of the bill where the governor appoints five members of the
council.
Co-Chair Stedman WITHDREW his OBJECTION. There being NO
OBJECTION, it was so ordered.
AT-EASE: 3:19:27 PM
RECONVENED: 3:20:39 PM
Co-Chair Hoffman MOVED to ADOPT Amendment 2:
Page 1, line 1:
Delete "and,"
Page 1, line 4, following "grants":
Insert "; establishing a state heating assistance
program in addition to the federal heating assistance
program; and providing for an effective date"
Page 2, line 25, following "in":
Insert "secs. 3 and 6 of"
Page 2, following line 25:
Insert a new bill section to read:
"* Sec. 2. AS 36.30.850(b) is amended by adding a new
paragraph to read:
(46) contracts for delivery of home heating
assistance under AS 47.25.626."
Renumber the following bill sections accordingly.
Page 5, following line 12:
Insert a new bill section to read:
"* Sec. 4. AS 47 is amended by adding new sections to
read:
Article 3A. Alaska Heating Assistance Program.
Sec. 47.25.621. Alaska heating assistance program.
(a) The Alaska heating assistance program is
established in the Department of Health and Social
Services to provide expanded eligibility for Alaska
residents for home heating assistance, to the extent
funds are appropriated by the legislature for that
purpose.
(b) The heating assistance program established
under this section is in addition to the federal low-
income heating and energy assistance provided under 42
U.S.C. 8621 - 8629 (Low-Income Home Energy Assistance
Act of 1981), as amended, and implementing regulations.
Sec. 47.25.622. Duties. The department shall
(1) administer the Alaska heating assistance
program provided under AS 47.25.621;
(2) adopt regulations under AS 44.62
(Administrative Procedure Act) to carry out the purpose
of the program;
(3) coordinate payments among other heating
assistance programs to avoid duplication of payments.
Sec. 47.25.623. Eligibility. An individual is
eligible for home heating assistance payments under the
Alaska home heating assistance program if the
individual
(1) is a resident of the state;
(2) is physically present and resides in a
home in the state when the home heating costs are
incurred;
(3) has gross household income above 150
percent but that does not exceed 225 percent of the
federal poverty guideline for Alaska set by the United
States Department of Health and Human Services and
revised under AS 42 U.S.C. 9902(2);
(4) meets other eligibility requirements
specified in regulations adopted under AS 47.25.622.
Sec. 47.25.624. Appeal rights. Except as provided
in AS 47.25.626(e), an individual who receives a
determination from the department that denies, limits,
or modifies home heating payments under AS 47.25.621 -
47.25.626, other than a determination based on
insufficient funding of the program, may request a
hearing before the department under regulations adopted
by the department.
Sec. 47.25.625. Ability to recover or recoup
improper home heating assistance payments. An
individual is liable to the department for the value of
assistance improperly paid under AS 47.25.623 if the
improper payment was based on inaccurate or incomplete
information provided by the individual. In a civil
action brought by the state to recover from the
individual the value of the assistance improperly paid,
the state may recover from the individual the costs of
investigation and prosecution of the civil action,
including attorney fees as determined under court
rules.
Sec. 47.25.626. Regional heating assistance
program. (a) The department may develop a regional
Alaska heating assistance program for the
administration of AS 47.25.621 - 47.25.626 to provide
home heating assistance in a uniform and cost-effective
manner in a region of this state if an Alaska Native
organization is authorized to implement a federally
approved tribal family assistance plan that includes
that region and has been awarded a tribal energy
assistance grant for a program that includes that
region under 42 U.S.C. 8623(d).
(b) The department may award contracts to
implement a program developed under (a) of this
section. A contract authorized for delivery of home
heating assistance under a regional Alaska heating
assistance program under this section is exempt from
the competitive bid requirements of AS 36.30 (State
Procurement Code). Subject to appropriation, a contract
under this section must be in an amount that represents
a fair and equitable share of the money appropriated
for the Alaska heating assistance program under
AS 47.25.621 - 47.25.626 to serve the state residents
specified in (a) of this section. The authority
provided under this section to contract is in addition
to the authority to contract in AS 47.05.015 or other
law.
(c) The department may award a contract under
this section only to an organization that
(1) has been awarded a tribal energy
assistance grant under 42 U.S.C. 8623(d) for a program
that includes that region;
(2) agrees to administer home heating
assistance under AS 47.25.621 - 47.25.626 to state
residents in the region; and
(3) agrees to implement an appeals process
as described in (e) of this section.
(d) Records pertaining to recipients of home
heating assistance under a contract awarded under this
section are confidential and not subject to disclosure
under AS 40.25.100 - 40.25.220.
(e) An organization that receives a contract
under this section shall provide an appeals process to
applicants for or recipients of home heating assistance
covered by the contract awarded under this section. The
appeals process must be the same as the method
available under AS 47.25.624, except that the decision
reached shall be considered a recommended decision to
the department. Within 30 days after receiving a
recommended decision, the department shall review the
recommended decision and issue a decision accepting or
rejecting the recommended decision. If the department
rejects the recommended decision, the department shall
independently review the record and issue its final
decision. The final decision of the department on the
matter is appealable to the courts of this state.
(f) If the department establishes a regional
Alaska heating assistance program and awards a contract
to provide home heating assistance under this section,
a person applying for home heating assistance under
AS 47.25.621 - 47.25.626 in the region of the state
covered by the regional home heating assistance program
may obtain home heating assistance from the department
only through the organization designated by the
department to serve the region."
Renumber the following bill section accordingly.
Page 5, line 20:
Delete "sec. 2"
Insert "sec. 3"
Page 5, line 21:
Delete "sec. 2"
Insert "sec. 3"
Page 5, line 23:
Delete "sec. 2"
Insert "sec. 3"
Page 6, line 8:
Delete "sec. 2"
Insert "sec. 3"
Page 6, following line 9:
Insert new bill sections to read:
"* Sec. 8. The uncodified law of the State of Alaska is
amended by adding a new section to read:
TRANSITION: RETROACTIVITY OF REGULATIONS.
Notwithstanding a contrary provision of AS 44.62.240,
if the Department of Health and Social Services
expressly designates in a regulation adopted under
AS 47.25.622(2), enacted by sec. 4 of this Act, that
the regulation applies retroactively to November 1,
2007, and is necessary to implement, interpret, make
specific, or otherwise carry out AS 47.25.621 and
47.25.623, enacted by sec. 4 of this Act, the
regulation may apply retroactively to November 1, 2007.
* Sec. 9. The uncodified law of the State of Alaska is
amended by adding a new section to read:
RETROACTIVITY OF CERTAIN PROVISIONS OF THIS ACT.
AS 47.25.621 and 47.25.623, enacted by sec. 4 of this
Act, are retroactive to November 1, 2007.
* Sec. 10. This Act takes effect immediately under
AS 01.10.070(c)."
Co-Chair Hoffman OBJECTED.
ROB EARL, STAFF, REPRESENTATIVE MARY NELSON, explained
Amendment 2:
Amendment #2 establishes the Alaska Heating Assistance
Program within the Department of Health and Social
Services (DHSS) to expand eligibility for Alaska
residents for home heating assistance. The program is
specifically in addition to the federal LIHEAP or Low-
Income Home Energy Assistance Program. Thirty-three
states currently contribute LIHEAP money in addition to
the federal assistance dollars - Alaska is not yet one
of them.
Currently, only Alaskans earning less than 150% of the
federal poverty guideline for Alaska are eligible for
the federal LIHEAP assistance program. Eligible
households receive grants averaging $780 per household
per winter.
Amendment #2 will serve an estimated 3800 additional
households state-wide with incomes between 150-225% of
the poverty guideline.
This amendment is intended to give the Department the
authority to provide a lump-sum, retroactive payment to
eligible recipients to assist with heating costs
incurred during the winter of 2007-2008.
Co-Chair Hoffman WITHDREW his OBJECTION. There being NO
OBJECTION, it was so ordered.
3:22:52 PM
Senator Elton MOVED to ADOPT Amendment 3:
Page, 5, lines 7-8 are amended to read:
(A) wind, solar, geothermal, hydrothermal, wave, tidal,
river in-stream, or hydropower;
Co-Chair Stedman OBJECTED.
Senator Elton explained that the amendment takes away some
of the ambiguity in the list of renewable energy resources
beginning on page 5, line 7.
Co-Chair Stedman WITHDREW his OBJECTION. There being NO
OBJECTION, it was so ordered.
Co-Chair Stedman reported that Amendment 4 was withdrawn by
Senator Olson.
3:24:58 PM
Co-Chair Stedman MOVED to ADOPT Amendment 5:
Page 3, line 1:
Add "and matching funds," after "eligibility"
Page 3, lines 3 and 4:
After legislature, delete rest of line 3 and 4.
(1) develop a methodology for determining the order of
projects that may receive assistance and will achieve a
statewide balance of grant funds, including separate
requirements for grant eligibility and matching funds,
and adopt regulations identifying criteria to evaluate
the benefit and feasibility of projects for which an
applicant applies for support from the legislature
[WITH SIGNIFICANT WEIGHT BEING GIVEN TO THE AMOUNT OF
MATCHING FUNDS AN APPLICANT IS ABLE TO MAKE AVAILABLE].
Co-Chair Stedman OBJECTED.
SARAH FISHER-GOAD, DEPUTY DIRECTOR OF OPERATIONS, ALASKA
INDUSTRIAL DEVELOPMENT AND EXPORT AUTHORITY AND ALASKA
ENERGY AUTHORITY, DEPARTMENT OF COMMERCE, COMMUNITY AND
ECONOMIC DEVELOPMENT, explained that the amendment clarifies
that matching funds should be required for the project. The
intent is to avoid determining what a significant weight
would be.
Co-Chair Stedman WITHDREW his OBJECTION. There being NO
OBJECTION, it was so ordered.
3:25:36 PM
Senator Olson MOVED to ADOPT Amendment 6:
Page 1, line 1:
Delete "and,"
Page 1, line 4, following "grants":
Insert "; and establishing an Alaska Renewable Energy
Task Force"
Page 1, line 8:
Delete "The"
Insert "For secs. 2, 3, 5, and 6 of this Act, the"
Page 2, line 25, following "in":
Insert "secs. 2 and 5 of"
Page 2, following line 25:
Insert a new subsection to read:
"(c) For sec. 4 of this Act, the legislature finds that
(1) energy issues are among the most critical
issues in the state; and
(2) a thorough assessment of present and future
state energy needs and requirements is necessary."
Page 5, following line 13:
Insert a new bill section to read:
"* Sec. 4. The uncodified law of the State of Alaska is
amended by adding a new section to read:
ALASKA RENEWABLE ENERGY TASK FORCE. (a) There is
established in the legislative branch of state
government the Alaska Renewable Energy Task Force. The
task force consists of seven voting members appointed
as follows:
(1) the speaker of the house of representatives shall
appoint three members from the house of
representatives;
(2) the president of the senate shall appoint three
members from the senate; and
(3) the governor shall appoint one member.
(b) The chair of the task force shall be a legislative
member selected by a majority vote of the members of
the task force. The staff of the members who are
legislators shall serve as staff to the task force.
(c) The task force shall prepare a report that
includes
(1) an assessment of future statewide renewable
energy needs; and
(2) recommendations for a statewide energy plan to
fulfill the state's renewable energy needs.
(d) Members of the task force are entitled to
transportation expenses and per diem allowances
provided by law.
(e) The task force shall meet at least four times. The
task force may meet in communities in the state that
are using or considering sources of renewable energy.
(f) The task force shall submit written reports of its
findings and recommendations to the legislature
(1) before March 1, 2009; and
(2) before March 1, 2010.
(g) The Alaska Renewable Energy Task Force is
terminated on April 16, 2010."
Renumber the following bill section accordingly.
Page 6, following line 9:
Insert a new bill section to read:
"* Sec. 7. Sections 1(c) and 4 of this Act are repealed
April 16, 2010."
Co-Chair Stedman OBJECTED.
Senator Olson explained the amendment rolls the CS for HB
404, as it came out of Community and Regional Affairs
Committee, into HB 152. It establishes an Alaska Renewable
Energy Task Force.
Co-Chair Stedman asked how long the task force would run.
Senator Olson said two years.
Co-Chair Stedman REMOVED his OBJECTION. There being NO
OBJECTION, it was so ordered.
3:26:46 PM
Senator Olson MOVED to ADOPT a Conceptual Amendment to allow
Legislative Legal to conform language as needed.
There being NO OBJECTION, it was so ordered.
3:27:46 PM
Co-Chair Stedman noted a fiscal note which reflected a $50
million appropriation to the Alaska Energy Authority. He
asked if AEA anticipates the need for additional money to
operate the program.
Ms. Sarah Fisher-Goad recommended that the appropriation be
a capital expense, rather than an operating expense. She
reported that she has provided a version J fiscal note,
which changed the funding source to general fund away from
the new renewable energy fund. With $50 million worth of
projects, there will be a need for additional outside
consultants for project evaluation. The fiscal note
reflects an additional $100,000 for a consultant for FY 2009
and $250,000 for FY 2010 - 2013.
Co-Chair Stedman MOVED to ADOPT new fiscal note CED, 4/9/08,
9:16 am.
AT-EASE: 3:29:40 PM
RECONVENED: 3:32:23 PM
There being NO OBJECTION, the fiscal note was adopted.
AT-EASE: 3:32:45 PM
RECONVENED: 3:40:45 PM
Senator Dyson MOVED to ADOPT Conceptual Amendment 7:
Page 2, line 4, after "natural gas" add ", clean coal"
Page 2, line 21, after "natural gas" add "and clean
coal"
Page 3, line 15, after "projects" add "and clean coal"
Page 5, move lines 9 & 10 to a new subparagraph (5) Bio
Mass Fuels
Renumber as necessary
Page 5, line 12, add "shallow gas"
Co-Chair Stedman OBJECTED.
Senator Dyson explained that the amendment brings
consistency to the bill. Clean coal is added throughout the
bill. Alaska has enough coal to supply all of North America
for the next 400 years. Senator Dyson maintained that bio
mass fuels are not renewable and should be in a new
subparagraph.
3:43:50 PM
Senator Elton objected to the page 5, line 9, change in the
conceptual amendment. He addressed the issue of renewable
resources. He used fish waste as an example of a renewable
resource. Senator Dyson said he didn't remove the category,
just moved it to another area in the bill. He commented
that stewardship was needed when considering renewable
energy sources.
Co-Chair Stedman MAINTAINED his OBJECTION.
A roll call vote was taken on the motion.
IN FAVOR: Dyson
OPPOSED: Elton, Thomas, Stedman, Olson
The MOTION failed (1-4).
AT-EASE: 3:47:00 PM
RECONVENED: 6:18:58 PM
CSHB 152(FIN) was heard and HELD in Committee for further
consideration.
6:20:16 PM
HOUSE BILL NO. 296
"An Act extending the termination date of the Board of
Parole; and providing for an effective date."
REPRESENTATIVE BOB LYNN, Sponsor, explained the bill extends
the Board of Parole for another eight years, as recommended
by Legislative Audit. He shared the purpose and
responsibility of the Board.
Co-Chair Stedman noted the fiscal note from the Department
of Corrections for $769,100 which is already included in the
operating budget.
6:22:17 PM
Co-Chair Hoffman MOVED to REPORT HB 296 out of Committee
with individual recommendations and the accompanying fiscal
note. There being NO OBJECTION, it was so ordered.
HB 296 was REPORTED out of Committee with a "do pass"
recommendation and with fiscal note #2 by the Department of
Corrections.
6:24:33 PM
HOUSE BILL NO. 334
"An Act extending the termination date of the Council
on Domestic Violence and Sexual Assault; and providing
for an effective date."
RENEE LIMOGE, STAFF, REPRESENTATIVE ANNA FAIRCLOUGH,
explained the purpose of the bill was to extend the
termination date of the Council on Domestic Violence and
Sexual Assault.
Co-Chair Hoffman MOVED to REPORT HB 334 from Committee with
individual recommendations and the accompanying fiscal note.
There being NO OBJECTION, it was so ordered.
HB 334 was REPORTED out of Committee with a "do pass"
recommendation and with fiscal note #1 by the Department of
Public Safety.
6:25:49 PM
CS FOR HOUSE BILL NO. 359(FIN)
"An Act relating to the term of probation for persons
convicted of minor consuming or in possession or
control of alcohol or repeat minor consuming or in
possession or control of alcohol; and relating to
termination of probation for certain persons convicted
of minor consuming or in possession or control of
alcohol or repeat minor consuming or in possession or
control of alcohol."
EMILY BEATLEY, STAFF, REPRESENTATIVE JAY RAMRAS introduced
the bill.
6:26:50 PM
REPRESENTATIVE JAY RAMRAS, Sponsor, explained that the bill
was drafted as a betterment bill. The concept originated to
help young people enter the military. Those convicted of
minor consuming or in possession of alcohol and who are on
probation cannot join the armed forces until they are 21.
This bill would allow those persons to petition the court to
be allowed to join the armed forces. He estimated that
there are about 3,500 persons in this category. New
probation terms have been established for first and second
violations.
Senator Olson asked if any other states have this type of
legislation. Ms. Beatley offered to find out.
Co-Chair Hoffman MOVED to REPORT CSHB 359(FIN) out of
Committee with individual recommendations and the
accompanying fiscal notes. There being NO OBJECTION, it was
so ordered.
CSHB 359(FIN) was REPORTED out of Committee with "no
recommendation" and with zero fiscal note #1 by the House
Judiciary Committee and fiscal note #2 by the Court System.
6:29:30 PM
HOUSE BILL NO. 400
"An Act relating to a person who seeks medical
assistance for a person experiencing a drug overdose."
REPRESENTATIVE BETH KERTTULA, Sponsor, explained that the
bill is to encourage people to dial 911 to save the life of
someone who may be suffering from a drug overdose. She
referred to a constituent's story which led to the drafting
of the bill. She described the mitigating circumstances.
Co-Chair Stedman requested a definition for "mitigating
factor". Representative Kerttula explained that after a
trial if there was a conviction on a drug-related offense,
and the defendant did make an attempt to help the person
suffering the overdose, then the judge can take that into
account when sentencing.
6:31:25 PM
Co-Chair Stedman concluded that there would still be an
arrest made, but the mitigating factors could be considered
when sentencing. Representative Kerttula agreed.
Senator Elton MOVED to REPORT HB 400 out of Committee with
individual recommendations and accompanying fiscal note.
There being NO OBJECTION, it was so ordered.
HB 400 was REPORTED out of Committee with a "do pass"
recommendation and with zero fiscal note #1 by the
Department of Administration.
AT-EASE 6:33:00 PM
RECONVENE 6:33:43 PM
HOUSE BILL NO. 413
"An Act extending the termination date for the Real
Estate Commission; and providing for an effective
date."
ELEANOR WOLFE, STAFF, REPRESENTATIVE KURT OLSON, stated that
the bill was introduced at the request of Department of
Commerce, Community and Economic Development and the
Legislative Budget and Audit Committee. It extends the
termination date of the Real Estate Commission to June 30,
2016.
Co-Chair Stedman noted one fiscal note by Department of
Commerce, Community and Economic Development.
Co-Chair Hoffman MOVED to REPORT HB 413 out of Committee
with individual recommendations and the accompanying fiscal
note. There being NO OBJECTION, it was so ordered.
HB 413 was REPORTED out of Committee with a "do pass"
recommendation and with fiscal note #1 by the Department of
Commerce, Community and Economic Development.
AT-EASE: 6:35:43 PM
RECONVENED: 6:36:27 PM
CS FOR HOUSE CONCURRENT RESOLUTION NO. 13(FIN)
Establishing and relating to the Education Funding
District Cost Factor Commission.
REPRESENTATIVE MIKE HAWKER, Sponsor, explained that the bill
was proposed by the joint legislative education funding task
force. He shared the history of the task force and its
conclusions. The bill charges a task force to work with the
legislature, the governor, departments, and resources to
develop a methodology for modeling and updating cost
factors.
6:39:33 PM
Co-Chair Stedman noted the fiscal notes.
Senator Elton asked what the purpose of the task force was.
Representative Hawker emphasized that the language in the
bill was very important. It was specifically "established
for the purpose of examining school cost differentials and
creating a valid and durable model that can be updated to
accurately reflect the costs of providing education".
Senator Thomas referred to line 16, page 1, and lines 1 and
2 on page 2, as the specific charges. Representative Hawker
said that is correct.
Senator Huggins referred to page 2, line 16, "no longer a
state legislator". Representative Hawker thought that
wording was changed in the proposed amendment.
6:42:07 PM
Co-Chair Stedman MOVED to ADOPT Amendment 1:
Page 1, line 11:
Before "2002," insert: "1983 - 1985, 1999"
Page 1, line 16:
Following "established," insert: "on January 20, 2009,"
Page 2, lines 15 - 16:
Delete, "a member may continue to serve even if the
member is no longer a state legislator,"
Page 2, following line 16:
Insert, "FURTHER RESOLVED that the commission may
submit a preliminary report of its findings and a draft
model to the governor and the legislature before
September 30, 2009; and be it"
Co-Chair Stedman OBJECTED.
Co-Chair Stedman explained that the amendment on page 1,
line 11, inserts "1983-1985, 1999" before "2002". Page 2,
lines 15 and 16 deletes "a member may continue to serve even
if the member is no longer a state legislator;". The
amendment also states that the commissioner may submit a
preliminary report of its findings and a draft model to the
governor and the legislature before September 30, 2009.
Co-Chair Stedman WITHDREW his OBJECTION. There being NO
OBJECTION, it was so ordered.
6:43:18 PM
Co-Chair Hoffman MOVED to REPORT SCS HCR 13(FIN) out of
Committee with individual recommendations the accompanying
fiscal note. There being NO OBJECTION, it was so ordered.
SCS HCR 13(FIN) was REPORTED out of Committee with "no
recommendation" and with zero fiscal note #2 by the House
Finance Committee for the Legislature.
6:44:11 PM
CS FOR HOUSE BILL NO. 252(STA)
"An Act requiring paid leave from employment for organ
and bone marrow donation."
REPRESENTATIVE GABRIELLE LEDOUX, Sponsor, explained that the
bill grants paid leave to state employees for up to 80 hours
in order to make an organ donation or bone marrow donation.
The bill has 11 co-sponsors and 6 zero fiscal notes.
Co-Chair Stedman noted only two zero fiscal notes.
6:45:42 PM
Senator Olson asked if any states have similar legislation.
Representative LeDoux replied that thirty states have
similar laws; 23 apply only to state employees.
BRUCE ZALNARAITIS, LIFE ALASKA, testified in support of HB
252.
Senator Huggins asked if any organization are opposed to the
bill.
SONYA HYMER, STAFF, REPRESENTATIVE GABRIELLE LEDOUX, said
she was not aware of any. Positive statements were received
from the National Marrow Donor Program, Life Alaska, and
Blood Bank of Alaska.
6:47:54 PM
Senator Elton MOVED to REPORT CSHB 252(STA) from Committee
with individual recommendations and the accompanying fiscal
notes. There being NO OBJECTION, it was so ordered.
CSHB 252(STA) was REPORTED out of Committee with a "do pass"
recommendation and with zero fiscal note #6 by the
Department of Administration and with zero fiscal note #7 by
the Department of Commerce, Community and Economic
Development.
AT-EASE: 6:48:34 PM
RECONVENED: 6:50:05 PM
CS FOR HOUSE BILL NO. 419(FIN)
"An Act relating to state lease-purchases of equipment
and other personal property; and providing for an
effective date."
Senator Huggins MOVED to ADOPT SCS CSHB 419(FIN), labeled
25-LS1567\V, Cook, 4/9/08, as the working draft before the
Committee. Co-Chair Stedman OBJECTED.
TOM WRIGHT, STAFF, REPRESENTATIVE MIKE CHENAULT, explained
that the new CS mirrors the bill that passed from the House.
Section 1 clarifies that lease-purchase agreements must be
for real property. Section 2 deals with lease-purchase of
personal property. It allows all agencies to enter into
lease-purchase agreements. If the agreement is worth over
$100,000 notice must be given.
Mr. Wright related that Section 3 says that by January 15 of
each year each agency, through OMB, has to submit a report
of every lease-purchase agreement.
Co-Chair Stedman WITHDREW his OBJECTION. There being NO
OBJECTION, SCS CSHB 419 (FIN) was adopted.
Co-Chair Stedman commented on a concern about the
restrictiveness of the bill. As a compromise, the House
version of the bill was adopted. There will be an on-going
opportunity to review the outcome of the bill and a chance
to tighten it up if necessary.
Senator Huggins asked if the sponsor supports the bill as it
is. Mr. Wright said he did. He further explained the cap
option, which was not incorporated in the bill. The issue
will be revisited as needed.
6:54:38 PM
Senator Thomas MOVED to REPORT SCS CS HB 419(FIN) from
Committee with individual recommendations and the
accompanying fiscal note. There being NO OBJECTION, it was
so ordered.
SCS CSHB 419(FIN) was REPORTED out of Committee with "no
recommendation" and with zero fiscal note #1 by the House
Finance Committee for the Department of Administration and
zero fiscal note #2 by the House Finance Committee for the
Office of the Governor.
AT-EASE: 6:55:22 PM
RECONVENED: 6:56:38 PM
CS FOR SPONSOR SUBSTITUTE FOR HOUSE BILL NO. 294(TRA) am
"An Act establishing the Alaska Marine Transportation
Advisory Board and setting out its powers and duties;
making conforming amendments; and providing for an
effective date."
CLIFF STONE, STAFF, REPRESENTATIVE PEGGY WILSON, explained
that the bill started off as a quasi-independent authority
board. A compromise was worked out with the House
Transportation Committee and the Alaska Marine
Transportation Advisory Board (AMTAB). The bill sets the
Board into statute.
Mr. Stone walked the Committee through the bill. On page 1,
the Department of Transportation and Public Facilities now
has to consult with AMTAB. On page 2, the board makeup has
been increased from 9 to 11 members in order to broaden the
scope and create more advocates. On line 22, it was not the
intent of the bill sponsors to create the impression that
there were two union seats on the board. The Governor's
office now understands the intent to have one position
include someone with Coast Guard, Navy, or Merchant Marine
experience.
7:01:24 PM
Mr. Stone noted that at least one member from the Ketchikan
Gateway Borough must be included on the board, and two
members who are residents of areas not served by the Alaska
marine highway also must be on the board. He explained that
after the commissioner of the transportation and public
facilities has considered one or more candidates for the
position of director or deputy commissioner of the Alaska
marine highway system, the commissioner shall confer with
the board about the position.
Mr. Stone highlighted the most popular part of the bill,
"the board may establish volunteer regional advisory
committees". The sponsors included this language to broaden
the users of the marine highway system. There is language
that a current AMTAB board member could be reappointed to
the board.
Mr. Stone said there was a zero fiscal note.
Co-Chair Stedman asked how the rotation of the board works.
Mr. Stone referred to Section 3 of the bill to explain
initial appointments and length of service. Co-Chair
Stedman commented that the seats are three-year terms and
there is a staggered start up.
Senator Huggins referred to page 3, line 15, and asked if
any consideration was given for the location of the
meetings. Mr. Stone said none was given.
7:04:30 PM
Senator Elton had concerns about continuity throughout the
bill. He asked about Section 1, page 1, the initial long-
range plan. He wondered if the board would be involved in
the update of the plan. He referred to page 3, line 30,
where it says the commissioner shall confer with the board
regarding the candidates. He voiced concern about the
wording. On page 4, line 9, he addressed the wording
"submit that plan to the department for its consideration".
He voiced concerns about "lack of teeth" in the bill.
7:07:25 PM
Senator Olson referred to the bottom of page 2, where a
member of the Ketchikan borough is included. He asked why
Ketchikan was singled out. Mr. Stone noted subsections A-E
had specific seats for those communities. The sponsors felt
it important to single out Ketchikan because it is a gateway
to Alaska.
7:08:49 PM
DAVE KENSINGER, PETERSBURG, stressed the importance of
having a board that provides important policy direction to
the marine highway system. He testified in support of the
bill.
7:10:53 PM
KATHY ROEMMICH, MARINE TRANSPORTATION ADVISORY BOARD,
testified in support of the bill. She said she prefers to
see it for three years. The bill would provide a solid
foundation. She especially liked the fact that it includes
people in other parts of the state not located on the marine
highway. She thought that having more communities involved
would be a very positive thing.
7:13:50 PM
MARY SIROKY, SPECIAL ASSISTANT, DEPARTMENT OF TRANSPORTATION
AND PUBLIC FACILITIES, stated that the bill meets the needs
of DOT.
Senator Huggins wondered about the effective date of five
years for the board. Ms. Siroky thought that the department
would work with the AMTAB no matter how the bill was worded.
CSSS HB 294(TRA) am was heard and HELD in Committee for
further consideration.
HOUSE BILL NO. 2
"An Act relating to the vocational education account
and appropriations from that account; and providing for
an effective date."
HB 2 was scheduled but not heard.
ADJOURNMENT
The meeting was adjourned at 7:15 PM.
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